MANILA, Philippines — Ayala-led AC Energy Philippines is subscribing to P442 million worth of shares of its subsidiary ACE Endevor to boost funding for the latter’s development projects.
In a disclosure to the Philippine Stock Exchange, AC Energy said it has signed a subscription agreement with ACE Endevor for the subscription of 4.4 million redeemable preferred shares (RPS), to be issued out of the unissued authorized capital stock of ACE Endevor.
“The subscription will be used by ACE Endevor to fund the requirements of its various development projects,” AC Energy said.
ACE Endevor is the firm’s energy development platform tasked with developing new greenfield projects, as well as looking at expansion opportunities in existing plants.
In August, AC Energy’s board approved the new land acquisition plan of ACE Endevor to expand to other geographies in the Philippines for the development of power generation and other types of projects, with a total budget of up to P5 billion.
The board also approved the investment of up to P2.9 billion for the construction of a 75-megawatt solar power plant in Palauig, Zambales, through subsidiaries ACE Endevor and Giga Ace 8.
In July, ACE Endevor signed a shareholders’ agreement with Axia Power Holdings Philippines Corp., a unit of Marubeni Corp. of Japan, to develop and operate a 150-MW diesel modular generator set power plant in Pililia, Rizal.
Under the deal, Axia will acquire 50 percent of the shares and 50 percent of the economic rights in Ingrid Power Holdings Inc., the special purpose vehicle of the diesel plant.
In turn, AC Energy will hold 50 percent of the shares and 45 percent of the economic rights, with Endevor having a five percent share of the economic rights in the project.
Once completed, the Ingrid diesel project will supply peaking and reserve power to the Luzon grid.
The plant is expected to be operational in the first quarter of 2021.
Last March, AC Energy consolidated its international and Philippine platforms to solidify the Ayala Group’s position in the power sector, with more clean power projects being eyed in the country.
AC Energy aims to exceed five gigawatts of attributable capacity and generate at least 50 percent of energy output from renewables by 2025.